PREET BHARARA, the United States Attorney for the
Southern District of New York, announced that ALAN FISHMAN and
DANIEL LEDVEN were sentenced earlier today by United States
District Judge DENISE L. COTE for their roles in operating a
fraudulent hedge fund that defrauded investors of approximately
$20 million. FISHMAN, who was the owner and President of A.R.
Capital Group, L.P. from 2002 until February 2006, was sentenced
to 37 months in prison. LEDVEN, who managed and operated A.R.
Capital Group, received 57 months in prison.

According to the charging documents in this case:

From 2003 through at least February 2006, LEDVEN and
FISHMAN, among others, fraudulently solicited investors for a
purported hedge fund that was managed by a company they
controlled called A.R. Capital Group, Inc ("A.R. Capital"). An
offering memorandum and brochure that was approved by LEDVEN and
FISHMAN, and sent to investors by other representatives, falsely
stated that the fund invested in international real estate
companies and engaged in active, leveraged trading. The written
materials also contained other misrepresentations about whether
the fund would be audited, and LEDVEN and FISHMAN's biographical
profiles, among other things. In addition, LEDVEN sent false and
misleading monthly account statements to investors that showed
large, positive returns on their investments.

Between 2003 and September 2006, A.R. Capital raised
approximately $20 million from individual investors in the
purported hedge fund. During that same time period, however,
approximately $18 million of those investor funds were wired to
various bank accounts in the Ukraine.

LEDVEN and FISHMAN pleaded guilty On March 2, 2010, and
March 4, 2010, respectively, to one count each of conspiring to
commit securities fraud. At the time of their guilty pleas,
Judge COTE entered forfeiture orders in the amount of $160,000
against FISHMAN and $213,693 against LEDVEN as the proceeds each
obtained from the crime.

Mr. BHARARA praised the investigative work of the joint
Federal Bureau of Investigation and New York City Police
Department task force in this case, and thanked the United States
Securities and Exchange Commission for its assistance.

The prosecution is being handled by the Office's
Organized Crime Unit. Assistant United States Attorney DANIEL S.
GOLDMAN is in charge of the prosecution.